A new civil lawsuit has been filed, as Utah sues Kalshi alleging unlawful gambling operations across the state. Attorney General Derek Brown announced the legal action in Utah Third District Court targeting the prediction market operator along with its affiliates and two Susquehanna trading firms. The complaint seeks financial restitution ranging from $30.6 million to $61.2 million based on alleged violations of statutes governing wagering and gaming activities.
State officials maintain that the suit was filed because the platform illegally offered sports, elections, politics, and culture event contracts to state residents. According to the filing, the company generated millions in fee revenues from over 32,000 verified accounts while local users lost an estimated $5.5 million on individual wagers. The state constitution prohibits gambling in all forms with 0% tolerance for commercial sportsbooks or lotteries. State regulators emphasize that these prohibitions remain strictly enforced regardless of whether transactions occur in physical venues or on digital devices.
As Utah sues Kalshi, the primary issue stems from so-called contracts that closely resemble traditional sports betting products, such as proposition wagers, parlays, and point spreads. Representatives for the platform rejected the claims and stated that operations fall under federal jurisdiction as a contract market regulated by the Commodity Futures Trading Commission. The operator maintains that single states should not exercise veto power over federally supervised financial exchanges.
Legal disputes over prediction markets continue in federal court following prior rulings regarding state regulatory authority. As Utah sues Kalshi , they seek civil remedies to stop unlicensed trading, enforce geolocation restrictions, and recover profits derived from transactions deemed unlawful. As Utah sues Kalshi, state attorneys warned other financial exchange operators that offering unapproved wagering contracts to residents violates local law. State investigators confirmed that civil proceedings remain active while broader reviews into prediction market compliance continue across the region.
